Chairperson, the IFP is very pleased to see that the mining department has been able to retain most of its staff members. The department is currently faced with serious challenges, and they will need all the support that they can get in order to overcome them. One of these challenges is being able to cope with a budget that seems insufficient to meet the task at hand. Within the industry itself, we have the following concerns. These concerns need special attention in order for us to deliver on transformation. The first concern is small-scale mining. We support the idea of small-scale mining projects as they are excellent vehicles for allowing disadvantaged communities to enter the industry. There are, however, a few obstacles to this process which must be overcome, the most notable being the obtaining of the necessary finances in order to start up such an enterprise.
Most small-scale miners have little difficulty in acquiring the requisite prospecting licence. It is the next step, namely that of obtaining finance, that hinders them from entering the industry, as finance houses are loathe to give money to what they deem high-risk start-ups. This leaves small- scale miners with no other alternative but to seek private finance. The problem with this is that most private financiers require exorbitant returns on investments and on shares in the start-up business and this results in the licence holder being sidelined, resulting in fronting.
The IFP would like to see greater involvement from the department in respect of providing or even sourcing technical and financial support for small-scale mining individuals.
The beneficiation of our natural resources must begin as soon as possible. It is an issue that we have skirted around for far too long. It is a big step, but its rewards for South Africa will be just as big. It will create employment and boost the mining sector, thus greatly benefiting our economy as a whole.
International investors must be encouraged to invest in our mining sector. A favourable climate must be created - one that lends itself to South Africa being chosen as the investment destination of choice. Loose talk regarding nationalisation doesn't inspire confidence in international investors, and will not assist us in attracting investment to our country.
Illegal mining operations are of serious concern. This is not only because of the many injuries and fatalities that occur, but also because of the fact that this unlawful activity is openly financed by certain individuals who seem to operate outside of the law and without fear of any criminal sanction. Where are the police? Without finance or market demands these practices would cease to occur. Why are they being so ineffective in curbing this illegal industry?
Sustainable development in the mineral and mining sector, as well as the creation of employment, should be our key focus at this economic juncture. Our country has great mineral wealth which can and should play a significant role in our rapid emergence from the current global economic crisis. The IFP supports the Vote. Thank you. [Applause.]